Indonesia recently imposed anti-dumping duty (ADD) equivalent to a maximum of Tk 956 per piece on import of 134 types of apparel products for three years. The Indonesian Trade Ministry’s Committee on Safeguards on recently issued a notification to this effect. The safeguard measures will apply after publication of the decree by the Finance Ministry. The notification was published on the website of the World Trade Organisation (WTO).
Although the duty is imposed unilaterally, Bangladesh’s export will be hit the hardest as the country already faces up to 25 percent duty on export of readymade garment (RMG) products to Indonesia, exporters and trade officials told. In fiscal 2019-2020, Bangladesh exported RMG products worth $27.91 mn to Indonesia, which is more than 54 per cent of the country’s total export to Indonesia worth $51.42 mn. In 2018-2019, Bangladesh exported apparel products worth $30 mn against import of textile articles worth $187 mn, including $133 mn of fibres, from the country.
Imposition of the safeguard duty on top of that will worsen Bangladesh’s export competitiveness in the country, experts in Bangladeshi said, hoping the Dhaka should utilise the scope for consultation and bilateral trade relations to mitigate the impact of the safeguard measures.
According to the notice, the safeguard duty has been imposed on top garments (casual), top garments (formal), bottom garments, suits, ensembles and dresses, outwear, babies’ garments and clothing accessories, headwear and neckwear.
The rate of specific duty is Rp 6,231 per piece of headwear and neckwear, Rp 45,499 for top garments (casual), Rp 1,56,979 for top garments (formal), Rp 90,346 for bottom garments, Rp 1,59,143 for suits, ensembles and dresses, Rp 1,38,930 for outwear, Rp 32,034 for babies’ garments and clothing accessories for the first year. The duty rate is slightly lower for the second and third years. The amount of duty ranges from Tk 37 to Tk 956 per piece of clothing item which come under the purview of the duty.
The notice said that WTO members who have substantial interests in the goods would have to request for consultation within seven days from the date of circulation of the notice. The consultation is scheduled to be held no later than March 19.
